Where Does the United States Stand in Free Trade and the Global Market?

Abstract

It is generally agreed that the United States operates within an economic system that advocates and practices free trade in the larger global economy. The theory of free trade seems to have remained the same since its identification by Adam Smith? however, the practice of free trade appears to have changed. It has evolved to a point where it seems to have become protectionist. Protectionism is witnessed as countries band together in trade agreements to protect and enhance their economic positions internationally. This protectionist positioning compares with the 16th and 17th century colonization period of the American east coast. Great Britain, during that period, engaged in the colonization of the American east coast for the purpose of expanding its trade and economic base. Today's trade agreements compare with the colonial trade agreements of yesterday. To explain this concept the United States will be the focus of discussion as it has evolved from a British colony to a nation which may be on the brink of economic colonization by Japan. This evolution will be traced through post-war policies, trade policies, technological development, and educational practices of the United States. It will be shown that the United states has a tendency to be more "protectionist” in its stance in the global market yet still consider itself a "free trade" nation.